Relationship Manager-SME -Tier-1 Somajiguda

Job Purpose

Job Purpose Description

Mortgage lending encompasses a wide variety of financing solutions for clients, ranging from vanilla Home Loans

and Loan against property, to more complex Lease Rental discounting, Commercial Purchase and Construction

Finance lending. Financing solutions are provided to Self-Employed [professionals/ non-professionals/ salaried]

against a wide array of lending programs, each of which aims to estimate the client’s repayment capability

accurately before the company to take an exposure. The lending program requires assessing clients on various

dimensions, including income, repayment behaviour, stability of income/ residence, profile, collateral [valuation,

marketability], ownership structure of business and the property and many others.

Loan approvals entail a good mix of profile checks, balance sheet lending and collateral assessment. An in-depth

understanding of the customer’s business model, customers & suppliers, success factors and dependencies needs

to be taken into account given these are long term exposures [ranging upto 15 – 20 years]. The financials are

assessed to understand the repayment capability in the near and long term. Collateral assessment is another

complex part of the underwriting process involving checking the structural stability, marketability, valuation,

regulatory / local body compliance and legal veracity – all to ensure the property can be liquidated to repay the loan

if required in case of customer default.

Lending is often structured to meet the client needs by deriving comfort through the hard collateral [can be a ready

or under-construction property / project] and cash flows [in form of rentals, or project cash-flows – both against sold/

unsold receivables].

In construction finance, underwriting focuses not on the balance sheet but significantly on the project and the

promoter group. Assessment here involves understanding the previous track record of the builder in terms of quality

and timeliness of completion, saleability of projects, track record with other lenders and no. of projects delivered in

the past. Project monitoring and end use of funds disbursed are critical here given risks around funds being used

elsewhere, sale receivables not coming to the lender as a repayment and so on. Prudent customer selection is

critical and is highly dependent on a relationship manager’s market awareness and client background information.

Being one of the most preferred asset classes in the lending space today lends this business the immense

challenge of competing with all FIs / banks in a highly price sensitive target segment.

The main challenges faced by this profile include keeping abreast of the latest market scenario, converting a

potential lead into a client against competition by a thorough understanding of the client requirement and effective

selling skills.